Buying the Pullback in NZD/USD at the 50 SMA
Risk currencies had a great time in October. The risk sentiment improved in financial markets after the US-China partial trade deal and the Brexit deal, although the latter didn’t pass the British Parliament. As a result, NZD/USD turned bullish and it climbed more than 250 pips, which took place in waves, as trends usually do.
Last week, the bullish trend resumed again after retracing lower in the previous week. The FED cut interest rates for the third time in a row and despite being over with rate cuts for now, they let markets know that the next move would likely be another cut rather than a rate hike, as things are right now.
Although,we are seeing this pair retrace lower today. The price has retraced around 40 pips lower now and the pullback seems complete on the H1 chart. The stochastic indicator is oversold on this chart and the 50 SMA (yellow) is providing support. Besides that, the previous H1 candlestick closed as a doji, which is a reversing signal. So, we decided to open a buy signal right here, hoping that buyers will return and the uptrend will resume soon.
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